The Foreign Direct Investment (FDI) rules have been amemded enabling the finance minister to clear up to 1,200 crore rupees foreign equity proposals without seeking approval of the Cabinet Committee on Economic Affairs.The Department of Industry Policy and Promotion (DIPP) has notified the changes in the FDI rules. Consequently, the proposals up to the threshold of 1,200 crore rupees would be considered by the Foreign Investment Promotion Board (FIPB). Earlier, a proposal above 600 crore rupees FDI was referred to the CCEA. While the FIPB gives its recommendations, the final clearance is given by the Finance Minister.<br/><br/>According to the DIPP Press Note, cases below Rs 1,200 crore rupees can be referred to the CCEA in special cases by the FIPB or the Finance Minister. The special circumstances could relate to certain issues like national security. <br/><br/>Besides, foreign investors need not seek fresh approvals from the government or FIPB in sectors which have been transferred to the automatic route or where FDI caps have been removed and also for additional investment. With the policy relaxation, the foreign companies will not be required to obtain no-objection certificates (NOCs) from domestic firms for a second time for raising investment in the ongoing projects. <br/><br/>As per the Press Note 1 of 2005, foreign companies needed NOC from their domestic partners for taking up activities in the same sector through joint venture or technical collaboration with other entities.<br/>